Understanding Luxury Brand Analytics
To increase online leads and sales for a luxury brand, take a 10,000 foot viewpoint of the analytics. Most luxury brands set benchmark goals typically expressed in a desired specific number such as we want a 100 leads per month. However, to reach that specific number, your analysis should look at the campaign trends and not a count down until that number is achieved. Focusing on the wrong benchmark number may cause you to completely miss the quality and then sales will take a major hit.
When evaluating trends over a period of one month, Funnel Science found that page views and visits increased for an direct response lead generation website from their Google Adwords campaign. In the context of the site success, it would be helpful if the advertiser was also to compare the number of conversions to determine if the Google Adwords campaign was increasing leads.
For an ecommerce site, if you achieve more traffic and page views, you would also expect to see a correlation in increase in sales or revenue. However, many internet marketing campaigns increase traffic but do not increase sales. Either the traffic is not relevant to the site or the site is not perceived well by the inbound traffic and therefore you get more traffic but no sales. Luxury brands face a greater conversion rate challenge because of their niche and the number of “Im just here to look”
To measure the the quality of the traffic, your first step should begin by reviewing the bounce rate for the traffic source and also the bounce rate on the landing page. By reviewing the bounce rates for all traffic to the landing page you can quickly determine the quality of the inbound visitors. The best analysis occurs by reviewing trends over a period of time allows you to understand the quality of the inbound traffic.
Google Analytics is a powerful tool but in the last year we have only seen 1 deployment accurately tracking the KPI’s of the luxury brand. If you are driving traffic to a website and not scrutinizing the analytics data and looking at the correct KPI, you are missing out and the information that will make or break the bank.
Through Paid search you can control the traffic and have greater control over the user experience and the funnel. Paid search is probably the best method to run A/b testing because it allows you to have total control over the quality of traffic and the funnel path that you want to direct. A good way of interpreting analytics report data is to create the context and review several different measurements but with a focus on quality of the leads, sales cycle, and the close ratio. These metrics require the luxury brand to track beyond the website into the sales and fulfillment cycles.